EXHIBIT 99.1
Omega Protein Reports $2.5 Million Profit for 2006 First Quarter
HOUSTON, May 8, 2006 – Omega Protein Corporation (NYSE symbol: OME), the world’s largest manufacturer of heart-healthy fish oils containing long-chain Omega-3 fatty acids, today reported net income for the first quarter of 2006 of $2.5 million (10 cents per share), compared with net income of $107,000, or 0 cents a share, for the first quarter of the previous year.
Revenues for the first quarter of 2006, which ended March 31, were $28.3 million, versus revenues of $23.8 million for the 2005 comparable quarter. Omega Protein had operating income of $3.4 million for the first quarter of 2006, compared with operating income of $278,000 in the comparable quarter of the previous year. First quarter 2006 margins were increased from the prior year’s comparable quarter due to higher sales prices experienced in the current quarter.
About Omega Protein
Omega Protein Corporation is the nation’s largest manufacturer of heart-healthy fish oils containing Omega-3 fatty acids for human consumption, as well as specialty fish meals and fish oil used as value-added ingredients in aquaculture, swine and other livestock feeds. Omega Protein makes its products from menhaden, an Omega-3 rich fish that is not utilized as seafood, but which is abundantly available along the U.S. Gulf of Mexico and Atlantic Coasts.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. The actual results of future events described in any of these forward-looking statements could differ materially from those stated in the forward-looking statements. Important factors that could cause actual results to be materially different from those forward-looking statements include, among others, (1) the possibility that the Company’s estimates and assumptions for its calculation of hurricane losses could be incorrect; (2) the Company’s ability to meet its raw material requirements through its annual menhaden harvest, which is subject to fluctuations due to natural conditions over which the Company has no control, such as varying fish population, fish oil yields, adverse weather conditions and disease; (3) the impact of worldwide supply and demand relationships on prices for the Company’s products; (4) Omega Protein’s expectations regarding demand for OmegaPure® proving to be incorrect; and (5) fluctuations in the Company’s quarterly operating results due to the seasonality of the Company’s business and its deferral of inventory sales based on worldwide prices for competing products. These and other factors are described in further detail in Omega’s filings with the Securities and Exchange Commission, including its 2005 Annual Report on Form 10K under the headings “Management’s Discussion and Analysis of Financial Condition” and “Risk Factors.”
OMEGA PROTEIN CORPORATION
STATEMENT OF OPERATIONS
(Unaudited)
| | | | | | | | |
| | | Three Months Ended March 31, | |
| | | 2006 | | | 2005 | |
| | | (in thousands, except
per share amounts) | |
Revenues | | $ | 28,303 | | | $ | 23,831 | |
Cost of sales | | | 21,311 | | | | 20,775 | |
| | | | | | | | |
Gross profit | | | 6,992 | | | | 3,056 | |
Selling, general and administrative expenses | | | 3,336 | | | | 2,778 | |
Loss resulting from natural disaster and other, net | | | 240 | | | | — | |
| | | | | | | | |
Operating income | | | 3,416 | | | | 278 | |
Interest expense, net | | | (292 | ) | | | (123 | ) |
Other income (expense), net | | | (22 | ) | | | (39 | ) |
| | | | | | | | |
Income before income taxes | | | 3,102 | | | | 116 | |
Provision for income taxes | | | 576 | | | | 9 | |
| | | | | | | | |
Net income | | $ | 2,526 | | | $ | 107 | |
| | | | | | | | |
Basic earnings per share | | $ | 0.10 | | | $ | 0.00 | |
| | | | | | | | |
Average common shares outstanding | | | 25,043 | | | | 24,906 | |
| | | | | | | | |
Diluted earnings per share | | $ | 0.10 | | | $ | 0.00 | |
| | | | | | | | |
Average common shares and potential common shares outstanding | | | 26,021 | | | | 26,985 | |
| | | | | | | | |
OMEGA PROTEIN CORPORATION
CONDENSED BALANCE SHEET
(Unaudited)
| | | | | | |
| | | March 31,
2006 | | December 31,
2005 |
| | | (in thousands, except per
share amounts) |
ASSETS | | | | | | |
Current assets | | $ | 95,689 | | $ | 98,390 |
Property and equipment, net | | | 97,285 | | | 93,965 |
Deferred tax assets, net | | | 5,736 | | | 6,293 |
Other assets | | | 1,539 | | | 1,579 |
| | | | | | |
Total Assets | | $ | 200,249 | | $ | 200,227 |
| | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Current liabilities | | $ | 17,040 | | $ | 19,270 |
Long-term debt, less current maturities | | | 27,057 | | | 27,658 |
Pension liabilities, net | | | 11,174 | | | 10,932 |
Stockholders’ equity | | | 144,978 | | | 142,367 |
| | | | | | |
Total liabilities and stockholders’ equity | | $ | 200,249 | | $ | 200,227 |
| | | | | | |
BOOK VALUE PER SHARE OUTSTANDING | | $ | 5.79 | | $ | 5.69 |
| | | | | | |
